- Capital Rx — a pharmacy benefit management solutions company — announced it raised $12 million in growth financing led by Edison Partners
Capital Rx — a company that works as pharmacy benefit management solutions for employers and unions — announced it has raised $12 million in growth financing led by Edison Partners. With the funding, Capital Rx plans to accelerate go-to-market execution and bolster its technology platform for transforming the $500 billion pharmaceutical benefits management (PBM) industry.
Prescription drug prices have been skyrocketing at an alarming rate and the public is demanding more transparency around the cost of healthcare. Plus large PBMs are facing scrutiny as their revenues are tied to drug prices and they have done very little to bring pricing transparency to the market over the last 20 years thus paving the way for next-generation PBMs that offer a more sustainable approach.
Capital Rx is overseeing prescription benefit plans and is bringing financial visibility at the individual level to help employers, unions, and government entities achieve lower costs, manage their high-cost populations more effectively, and improve patient outcomes.
“Capital Rx is tackling one of the most pertinent issues in the healthcare system: a lack of pricing transparency. Their focus on providing a transparent clearinghouse and great service has quickly resonated with employers that have grown frustrated with the existing PBM model and are looking for an innovative solution to rising prescription costs. As a rapidly growing health technology company with a large addressable market, Capital Rx is a great fit for our portfolio and we look forward to helping AJ and the management team achieve their vision and maximize their market potential,” said Lenard Marcus — General Partner at Edison Partners.
Since launching in April 2018, Capital Rx has realized 3,000% year-over-year revenue growth with strong gross margin even as the company passes through savings to customers. Capital Rx’s richer data sources, unique flat-fee business model, and efficient workflows have helped the company attract employers like Philadelphia Federation of Teachers, The International Brotherhood of Teamsters, and WoodForest Bank.
“The future of the pharmacy benefits industry is value-based—and that’s in line with our ethos to bring sustainable and transformative programs that accurately balance access, cost, and outcomes. Edison Partners is providing both the capital source and operating leverage to help us accelerate our go-to-market strategy and disrupt the supply chain with scalability, technology, and service differentiation,” added AJ Loiacono — founder and CEO of Capital Rx.
